EU, UAE eye closer trade ties as CEPA talks set to begin

The European Union and the United Arab Emirates have agreed to launch free trade talks, the EU and UAE said on Thursday, amid the upheaval and uncertainties created by US President Donald Trump’s decision to impose tariffs.

He has since walked back some of the tariffs.

Read-Trump’s stunning tariff pause focuses trade war on China

The European Commission President von der Leyen held a cordial phone call with Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement,” the EU said in a statement.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.

The UAE president also said that the agreement to launch talks towards a Comprehensive Economic Partnership Agreement (CEPA) with the EU is aimed at deepening bilateral relations and promoting economic growth.

By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE’s state news agency (WAM) said.

The EU is the UAE’s second-largest trading partner, accounting for 8.3 per cent of the Emirati total non-oil trade. The Gulf country is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.

The UAE has long advocated deeper EU involvement in the Gulf region. It is the Arab world’s second-largest economy after Saudi Arabia, a major Middle East trade partner for many other nations, and its sovereign wealth funds rank among the world’s most active.